- Scammers created a fake crypto platform, OURBIT, with fabricated trading features.
- Victims were lured through manipulated data and false investment advice in WeChat groups.
- The court sentenced 34 individuals to prison, with terms ranging from 3 to 12 years.
A large-scale crypto fraud operation in China has led to the conviction of 34 individuals for scamming nearly 30,000 victims out of $64 million. The scammers created a fraudulent exchange, OURBIT, and misled investors by manipulating trading data and falsely claiming financial legitimacy from Singapore, the U.S., and the U.K.
The criminals used social media to attract victims, posing as investment experts and sharing fake success stories. When users tried to withdraw profits, their accounts were frozen or required additional deposits to access funds.
OURBIT Crypto Scam: 34 Fraudsters Jailed in China for $64M Scheme
The OURBIT crypto scam was a meticulously planned operation that preyed on thousands of unsuspecting investors. By creating a seemingly legitimate trading platform with professional features, the scammers convinced people to invest in non-existent cryptocurrencies. Many victims were drawn in through WeChat groups, where fake investment experts promoted high returns.
To further solidify trust, the fraudsters used social engineering tactics, including paid actors who pretended to be successful investors. Victims, enticed by small initial gains, often reinvested larger sums, only to have their accounts frozen or funds stolen when they attempted withdrawals.
Authorities found that the operation was highly structured, with separate teams handling technology, recruitment, and business management. The scam relied on a network of agents and sub-agents who brought in new investors, ensuring a continuous flow of money into the fraudulent platform.
The Ezhou Court handed down prison sentences ranging from 3 to 12 years, emphasizing the need for greater public awareness and caution when dealing with crypto investments. The judge urged investors to avoid quick-profit schemes and to verify platforms before committing funds.
This case serves as a stark warning about the dangers of unregulated crypto platforms. Investors should always conduct thorough research, verify licensing claims, and be skeptical of platforms promising guaranteed profits.
“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin
